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JP Morgan Chase's fourth-quarter earnings surged 53% as the bank recorded strong revenue, while credit continued to strengthen.

The largest US bank by assets was catapulted into spotlight starting early April as its outsized, complex trades on credit default swaps tied to corporate bonds came under intense scrutiny during the "London Whale" debacle. The losses in the Chief Investment Office, which invests the bank's excess cash, tainted the reputation of chief executive officer James Dimon as one of the industry's best risk managers.

On Monday, the bank was hit with four formal enforcement actions from US regulators pertaining to the lapses that allowed a small group of London-based traders to rack up losses of more than $6bn last year. Wednesday, JP Morgan said its Treasury and Chief Investment Office had recorded a net loss of $157m on the fourth quarter, compared to net income of $417m in the year ago.

Separately on Wednesday, the bank made public an internal report outlining mistakes and oversights by executives who played a role in the trading flap like chief investment officer Ina Drew, who has since left the bank, and Douglas Braunstein, who was chief financial officer during the episode and has since become a vice chairman. In the report, JP Morgan said it cut Dimon's compensation for 2012 by 50.2% to $11.5m.

JP Morgan also was part of a group of 10 banks that last week said they would pay $8.5bn to close a regulatory probe and end a process set up in 2011 amid public outrage over banks' foreclosure practices. Swamped with foreclosure filings, many banks allegedly used "robo-signers" to sign off on thousands of cases, stating falsely that they personally reviewed each one. JP Morgan had previously said it would take a $700m pretax charge in the fourth quarter related to the cost of the settlement.

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The latest period included a net per-share gain of four cents tied to the foreclosure settlement, debit valuation adjustments and other items. The year-ago period included net charges of six cents a share related to debit valuation adjustments, litigation reserves and benefits from reduced loan loss reserves.

Revenue on a managed basis, which excludes the impact of credit-card securitisations and is on a tax-equivalent basis, was up 9.8% to $24.38bn.

Analysts polled by Thomson Reuters expected a per-share profit of $1.16 on revenue of $24.42bn.

Shares fell 1.2% to $45.80 in recent pre-market trading. Through Tuesday's close, the stock has climbed 29% in the past 12 months.

Non-interest expenses rose 10% to $16.05bn.

Overall, the bank's credit-loss provisions – funds set aside to handle future loan losses – totaled $656m, down from $2.18bn a year earlier and $1.79bnin the third quarter.

JP Morgan's investment banking arm turned a profit of $2bn, more than double that of a year earlier but almost flat with the third quarter.

Last week, JP Morgan – the third-largest money-fund provider in the US – said it would begin disclosing the net asset values of three of its money-market mutual funds daily rather than monthly, following a similar move by Goldman Sachs.

And in November, JP Morgan struck a deal with the US Securities and Exchange Commission to settle allegation that the bank kept cash payments from mortgage originators as compensation for problem loans that were rolled up into mortgage securities, rather than passing that money on to the investors in the securities. Under the agreement, JP Morgan will pay $296.9m to the SEC, which will distribute the money to investors who were harmed.